July 27, 2018 / 7:30 AM / a year ago

WeWork's China unit gets $500 million funding from Temasek, Softbank, others

FILE PHOTO: A logo of U.S. co-working firm WeWork is pictured during a signing ceremony in Shanghai, China April 12, 2018. Picture taken April 12, 2018. Jackal Pan via REUTERS

BEIJING (Reuters) - The Chinese unit of U.S. co-working space provider WeWork Cos said it has raised $500 million from investors including Temasek Holdings [TEM.UL] and SoftBank Group Corp (9984.T) as it looks to expand in the market for shared office space in the country.

It is the second $500 million investment the unit has received since it was launched a year ago in China where it is competing with local firms such as UrWork, which WeWork sued in September alleging trademark infringement.

Other investors in the latest round include private equity firm Trustbridge Partners and Chinese fund Hony Capital, WeWork said in a statement on Thursday.

The new investment follows WeWork China’s purchase of local rival Naked Hub, which helped boost the firm’s presence to 40 locations in three cities, with roughly 20,000 members.

“While there is still much to do and learn, this investment highlights the potential for WeWork ... and reaffirms our dedication to our team, our members and our partners in China,” WeWork cofounder and CEO Adam Neumann said in a statement.

New York-based WeWork leases office spaces and rents them out to individuals and startups, and has said it hopes to boost its membership in China to 1 million by 2021.

Reporting by Cate Cadell; Editing by Himani Sarkar

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